GST / HST on new construction
GST or HST applies to brand-new homes from builders. Resale homes are exempt. Use this to budget the tax owed before applying any new-housing rebate.
Your scenario
Result
See the new-home HST rebate calculator — most first-time buyers under ~$450k get a portion back.
GST / HST on new homes — who pays it and when
When you buy a brand-new home directly from a builder in Canada, GST (in GST-only provinces) or HST (in HST provinces) applies on top of the price. Resale homes are completely exempt. The tax is calculated on the pre-tax purchase price and is generally due at closing.
Rates by province
- HST 13%: Ontario
- HST 15%: Nova Scotia, New Brunswick, PEI, Newfoundland & Labrador
- GST 5% + QST 9.975%: Quebec (treated separately from HST)
- GST 5% only: Alberta, British Columbia, Manitoba, Saskatchewan
Most builder prices include the tax — but check
Major builders typically advertise prices that already include GST/HST and assume you'll receive the New Housing Rebate. Smaller builders sometimes quote pre-tax prices. Always confirm whether the price you're seeing includes:
- The federal GST/HST
- The provincial portion (in HST provinces)
- The federal New Housing Rebate assignment
- The provincial new housing rebate (Ontario, NS, PEI)
Federal new housing rebate — phases out 350k–450k
The federal rebate equals 36% of the federal 5% GST on the first $350,000 of price, phasing out linearly to $0 at $450,000. So:
- $350,000 home: rebate = $6,300
- $400,000 home: rebate = $3,150
- $450,000+ home: rebate = $0
Ontario provincial rebate — no phase-out, capped at $24,000
Ontario adds its own rebate equal to 75% of the 8% provincial portion of HST, capped at $24,000. Unlike the federal rebate, the Ontario rebate does NOT phase out at higher prices — so a $1.2M Ontario new build still gets the full $24,000 back. See the new-home HST rebate calculator for the math.
Assignment sales — the buyer's twist
If you buy a pre-construction condo via assignment, GST/HST on assignments has been clarified by CRA: the assignment fee itself is now subject to GST/HST. Buyers should budget for the assignment fee's tax in addition to the regular new-build tax.
Investor / rental new builds
If you're buying new-build to rent (not as your principal residence), you don't qualify for the New Housing Rebate. Instead, you may qualify for the New Residential Rental Property Rebate, which requires you to actually rent the property for at least 1 year. You file Form GST524 with CRA after the first lease is signed.